Thursday, November 20, 2025
US shifts Bangladesh ties to trade and security
BY Insider Desk
July 07, 2025

The Trump administration’s approach to Bangladesh has shifted sharply towards trade and geopolitical interests, with reduced focus on democracy promotion or development aid, according to Michael Kugelman, a South Asia affairs expert.
Writing in Foreign Policy’s South Asia Brief, Kugelman observed that the current US administration has shown “little interest” in nation-building efforts in Bangladesh, instead prioritising economic and security cooperation.
His remarks follow a high-level phone call on Monday between Bangladesh’s Chief Adviser Professor Muhammad Yunus and US Secretary of State Marco Rubio, which offered a rare glimpse into the evolving dynamics of Bangladesh-US relations during Trump’s second term.
Official readouts from both Washington and Dhaka indicate that the conversation centred on strengthening bilateral trade and enhancing Indo-Pacific security cooperation—a key priority for the US in its strategic rivalry with China.
Kugelman noted that both priorities present complex challenges for Bangladesh. While Dhaka aims to deepen trade ties with Washington, it faces a steep 37 percent US tariff on its exports unless a trade deal can be secured. The tariff stems from President Trump’s recently announced “Reciprocal Tariffs” policy, which imposes higher duties on countries perceived to have unfair trade advantages.
At the same time, Bangladesh has traditionally pursued a non-aligned foreign policy, balancing its relationships with major powers without overtly taking sides. The new US security overtures could test this approach as Washington ramps up efforts to counter China’s influence in the Indo-Pacific.
During the call, both Yunus and Rubio reiterated their commitment to economic partnership and regional security. “The Secretary and Chief Adviser affirmed their shared commitment to deepening economic ties between the United States and Bangladesh and to enhancing security and stability throughout the Indo-Pacific region,” US State Department spokesperson Tammy Bruce said.
The phone conversation marks one of the highest-level bilateral engagements since mass protests forced former Prime Minister Sheikh Hasina from office in August last year. The Biden administration, in its final months, had pledged fresh development aid and support for democratic reforms to the then-interim government. However, Kugelman noted that such priorities appear to have been sidelined under the Trump administration’s renewed emphasis on trade and strategic interests.
Earlier in April, Prof Yunus convened an emergency meeting with advisers and trade officials to address the tariff challenge. The Bangladesh government is hopeful that ongoing discussions with the US will lead to some relief, though the broader shift in US policy priorities could complicate negotiations.
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